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Strategic Minerals to Acquire Balance of Redmoor
Strategic Minerals to Acquire Balance of Redmoor.
About this update from Strategic Minerals Plc
[{"type":"text","content":"\n \nRNS Number : 0908T Strategic Minerals PLC 18 March 2019 \n\nMarket Abuse Regulation (MAR) Disclosure\nCertain information contained in this announcement would have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.\n \n18th March 2019\nStrategic Minerals plc\n(\"Strategic Minerals\", \"SML\" or the \"Company\")\nStrategic Minerals to Acquire Balance of Redmoor\n \nStrategic Minerals plc (AIM: SML; USOTC: SMCDY), a producing mineral company actively developing projects prospective for battery materials, is pleased to announce that it has entered into arrangements with New Age Exploration Limited (\"NAE\") to acquire its entire 50% shareholding in Cornwall Resources Limited (\"CRL\"), the joint venture vehicle developing the Redmoor Tin/Tungsten project in Cornwall (\"Redmoor\"), for a total capped purchase price of £2.66 million (approximately A$5.00 million) (the \"Acquisition\"). The Acquisition is subject to approval by NAE shareholders at a general meeting and upon completion of the Acquisition, CRL will be 100% owned by SML. The purchase price has been structured to reflect expected future SML cash flows and a significant component of the purchase price will be determined by future production revenues.\n \nHighlights\n· SML acquires full control of Redmoor, subject to ratification of NAE shareholders at a general meeting.\n· Purchase price for 50% of CRL set at a maximum of £2.66m (A$5.00m) payable in three stages as follows:\ni. £1.06m (A$2.00m) in cash within 30 days of approval by NAE shareholders\nii. £0.54m (A$1.00m) SML promissory note payable 180 days after settlement\niii. A royalty stream of 1.5% of Net Smelter Revenue from Redmoor production capped at £1.06m (A$2.00m)\n \nCommenting, John Peters, Managing Director, Strategic Minerals, said:\n\"The recent resource upgrade has highlighted the potential world class nature of the Redmoor Tin/Tungsten project and has given the Board confidence to consolidate control. To date, SML has progressed Redmoor in conjunction with its joint venture partner, NAE, and is delighted that this opportunity has arisen to acquire total control of the project. Whils...